Global social media market to reach $21.35 billion in 2028
By Felicia Nwosu
Business Research Insights, an organisation that offers expert analysis and accurate data-based market intelligence, in its market research report on global social media market, has projected that it is expected to expand at a booming compound annual growth rate CAGR of 25.92 percent during the forecast period to reach USD 21.35 billion in 2028.
Giving a comprehensive analysis of the industry landscape, it revealed that global social media market size was USD 5.357 billion in 2021, while maintaining that the sudden rise in CAGR is attributable to the market’s growth and high demand caused by the global Covid–19 pandemic. It reaffirmed that this has been unprecedented causing social media to experience a-higher-than-anticipated demand across all regions compared to pre-pandemic levels.
According to the research platform, social media is a highly competitive and ever-evolving landscape that requires businesses to stay ahead of the curve to succeed, which led to the influx of diverse users for various purposes.
The analysis showed some of the contributors to the exceptional surge recorded. It mentioned that such contributing factors include sales made by entities companies, sale proprietorships, or partnerships) that allow customers to interact, create, and share information and content, while users of social media can share messages, videos, and music recordings. According to the research firm, revenues from advertising messages and certain other services provided on media sites are included in this market.
It noted that social or online media advertising and online media premium service are the two main forms of social or online media. This marketing is a form of digital advertising in which sponsored advertisements are distributed to target audience via media platforms such as Facebook, Linkedin, Snapchat, Twitter, and Pinterest
Business Research also indicated that the various services involve social networking, micro-blogging and instant messengers, photo sharing networks, and is used by a wide range of industries including retail and wholesale transportation production, food and beverages, banking sectors, information and technology, electronics and electrical manufacturing, media and entertainment, transport services, healthcare, and others.
According to the platform, several trends also led to developing consumer acceptance of E-Commerce to intensify market magnification.
“To increase revenue, social or online media businesses are making their platforms available for electronic commerce or electronic transaction of products and services. This can be explained by increasing consumer acceptance of e-commerce and internet shopping as a result of increased smartphone and internet penetration
“For example, thus according e-commerce source of data Internet Retailer information 2020, U.S. e-commerce revenue grew 44 percent owing to the COVID-19 pandemic accounting for even more over 21 percent of overall retail sale Targeted advertising is possible on social or online media platforms based on consumers behavioral traits, geographical areas and demographics Instagram, an image and clip online media service ban got to add a Shopping tab to its apps Explore page.”
The social media market is also segmented into social media advertisement, social media subscription but it noted that social media advertisement is the leading part of the type segment.
It also specified that market are segmented into retail and wholesale, transportation, manufacturing food and beverages, financial services, information and technology where retail and wholesale are the leading part of the application segment.
Growing mobile, iPad and other electronics penetration, as well as rising data consumption, will motivate social media market growth and increased sales of internet connected gadgets including laptops result in more time being spent on social networking websites.
“Also its driving factors are accelerated by the elevating electronics penetration to boost market share, as the overall number of mobile devices worldwide managed to reach 6 billion in 2020, implying that eight out of ten people purchased a mobile phone in 2020, ultimately driving online media companies’ revenues. It said, the growing utilization smartphones is anticipated to increase wet activity, going to drive social media market share, especially with the plethora of channels available for users to leverage,” the research body stated.
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